Worksheet: Put each rep's cost beside the margin they cover

Total sales cost is usually one line in the accounts. This sheet splits it by rep and by account group and sets it beside gross margin. It builds the Competent step of the check:

Sales cost per rep and per account group is calculated at least yearly and set beside the gross margin those accounts produce.

Step 1. Cost each rep fully

Cost line	Rep 1	Rep 2	Rep 3	Rep 4
Salary and super
Incentive paid
Car, travel and phone
Share of sales support and the manager
Fully loaded cost

Step 2. Set it beside the margin each rep covers

Rep	Accounts	Revenue	Gross margin	Revenue per account	Sales cost as a share of gross margin
e.g. Rep 2	140	$3.1m	$0.9m	$22k	21%

Step 3. Do the same by account group

Cost per contact = total sales cost ÷ total contacts a year. Use the ranks from the coverage sheet.

Account group	Accounts	Gross margin	Contacts a year	Cost of those contacts	Margin left after sales cost
A
B
C
Prospects

Where the margin left is thin or below zero, the visits cost more than the accounts return. Change the contact for those accounts first.

Done when: sales cost per rep and per account group is worked out at least once a year and read beside gross margin.

Adapted from our own growth diagnostic (Forty 2, 2025).